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Trade Idea: 2011-10-13 1:38

EUR/USD 1-Hour Chart

I’ve gotten burned countless times for going against the trend so this time, I’m just gonna go with the flow. Looking at the charts, we see that EUR/USD is on an uptrend as proven by the higher highs and higher lows it’s been making.

The pair is just consolidating around at 1.3800 handle now, so my plan is to wait for it to make a new high around 1.3840 before going long. I would then set my stop below the consolidation area at 1.3750.

As for the fundamentals, it seems that optimism is picking up. For one, Slovakia’s political parties have finally reached a deal with regard to the European Financial Stability Facility (EFSF) expansion yesterday after they had rejected earlier. This led to a wide-reaching risk rally in high-yielding currencies, with the euro at the forefront of the pack.

The only tier 1 report scheduled to be released today is the U.S. trade balance. The market is expecting a 46 billion USD deficit, but if the actual figure misses forecast, we could see a breakout!

So, based on the technicals and fundamentals, I’m going to go long once it breaks out to the upside. Here’s my plan again:

Buy EUR/USD at 1.3840, SL at 1.3750, PT to be determined. I will risk 1% of my account.

Let’s go bulls! I hope ya’ll have some steam left!

XOXO,

Huck

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This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.